A brief discussion on world bank functioning and World bank group

1. Presentation on World Bank
Prepared by-
Hirak Jyoti Nath (MCI15015)
Prantik Das (MCI15016)

2. World Bank
• The World Bank is an international financial
institution that provides financial and technical
assistance to developing countries for development
programs.
• It is an international agency owned by Governments,
making long term loans to member countries and
finance productive investment in member countries.

3. • The IMF and World Bank was conceived at a UN
Conference of 44 Nations held at Bretton Woods,
New Hampshire, United States, in 7th July 1944
primarily by the ideas of Harry Dexter White and
John Maynard Keynes.
• These two international institutions are known as
Bretton Woods Twins.

4. Motto: Working for a World Free of Poverty
Formation: July 1944
Headquarter: Washington D.C. United States
Membership: 189 countries (IBRD)
173 countries (IDA)
President: David Malpass from U.S.
Parent Organization: World Bank Group
Goal: The World Bank’s most recent stated goal is the
reduction of poverty.

5. Mission
To end extreme poverty
By reducing the share of the global population that
lives in extreme poverty to 3 percent by 2030
To promote shared prosperity
By increasing the incomes of the poorest by 40
percent of people in every country.

6. Objectives
1. To provide long-run capital to member countries for
economic reconstruction and development
2. To induce long-run capital investment for assuring
Balance of Payments equilibrium and balanced
development of international trade
3. To promote private foreign investment by means
such as participation in loans or guarantee for loans
made by private investors
4. To help in raising productivity, standard of living
and conditions of labour in member countries.

7. 5 Priority Areas of The World Bank:
1. World Bank provides the largest external funds for
education.
2. It is a big support in reducing poverty.
3. It provides fund for biodiversity projects.
4. It helps to bring clean water, electricity and transport
to poor people.
5. It helps in controlling emerging conflicts.

8. The World Bank offers two basic types
of loan
• Investment loans: Support of economic and social
development projects.
• Development policy loans: Quick disbursing finance
to support countries

9. Organization of the World Bank
Board of Governor: All power of the bank vested in Board of
Governors, which is the supreme policy making body of the
bank.
Board of Executive Directors: The executive directors meet
regularly once a month to carry on the routine working of the
bank.
Advisory Council: It consist of 7 members from member
countries who are expert in commerce, industry, banking,
agriculture, labour, transportation and law.
Loan Committee: This committee recommend loan required
by member country.
President and Other members of staff: President is
responsible for the conduct of the day-to-day business of the
bank.

10. World Bank’s Lending Operations
Loans out of its own funds: The World Bank collects
fund from member countries and grant loans to needy
countries.
Loans out of borrowed capital: If bank grants loans by
borrowing from other countries.
Loans through bank’s guarantee: Sometimes, the
bank encourages the private investors of a country to
lend their funds to another country by guaranteeing
the repayment of loans and interest.

11. World Bank Group
International
Bank for
Reconstruction
and Development
International
Development
Association
International
Finance
Corporation
Multilateral
Investment
Guarantee
Agency
International
Centre for
Settlement of
Investment
Disputes

12. World Bank Group
International Bank for Reconstruction and Development
(IBRD), established in 1945, lends to governments of middle-
income and creditworthy low-income countries.
International Finance Corporation (IFC), established in 1956,
which provides various forms of financing without sovereign
guarantees, primarily to the private sector.
International Development Association (IDA), established in
1960, which provides interest-free loans -called credit- and
grant to governments of the poorest countries.

13. International Centre for Settlement of Investment Disputes
(ICSID), established in 1965, provides international facilities
for conciliation and arbitration of investment disputes.
Multilateral Investment Guarantee Agency (MIGA),
established 1988, which provides insurance against certain
types of risk, including political risk, primarily to the private
sector.

14. Conclusion
• The IFIs (international financial institutions) World Bank and
IMF are pillars of globalization. They are designed to help
manage the international financial system, they have taken on
major roles as drivers of closer economic integration of all of
the world’s countries, from the advanced to the least
developed.
• They have provided funds and advice to assist countries with
their economic development and policy-making. At the same
time, they are criticized on many levels, like, for intrusiveness
into the economic and political sovereignty of nations
dependent on their aid, lack of transparency, and impact of
their policies on societies and the environment.